HomeMy WebLinkAbout03-13-2013 Administration Agenda Package Wednesday, March 13, 2013
5:30 P.M.
Orange County Sanitation District Administration Building
Regular Meeting of the Board Room
Administration Committee 10844 Ellis Avenue
Fountain Valley, CA
714 593-7130
AGENDA
PLEDGE OF ALLEGIANCE:
DECLARATION OF QUORUM:
PUBLIC COMMENTS: If you wish to speak, please complete a Speaker's Form and give it to the
Clerk of the Board. Speakers are requested to limit comments to three minutes.
REPORTS: The Committee Chair and the General Manager may present verbal reports on
miscellaneous matters of general interest to the Committee Members. These reports are for information
only and require no action by the Committee.
REPORT OF DIRECTOR OF FINANCE AND ADMINISTRATIVE SERVICES:
CONSENT CALENDAR:
1. Approve Minutes of the February 13, 2013, Administration Committee Meeting.
2. Recommend to the Board of Directors to:
Adopt Resolution No. 13-XX, adopting a Conflict of Interest Code which
supersedes all prior conflict of interest codes and amendments previously
adopted.
3. A. Waive the one year prohibition in OCSD Personnel Policy 1.4 for James
D. Ruth regarding retaining former employees as independent contractors
or consultants; and
B. Authorize the Board Chair to execute a Consulting Services Agreement
with James D. Ruth effective April 1, 2013 for a three month term with the
option for a three month extension (maximum six month term) at a cost of
$10,000 per month.
0311 W13 Adainistation Committee Agenda Page 1 of 2
INFORMATION ITEMS:
4. Capital Improvement Program and Proposed User Fee Schedule
5. Proposed Update to FY 2013-14 District Budget
6. District Insurance Renewals, 2013-14
OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA
ITEMS, IF ANY:
ADJOURNMENT:
The next Administration Committee Meeting is scheduled for Wednesday, April 10,
2013.
Accommodations for the Disabled: Meeting Rooms are wheelchair accessible. If you require any special disability
related accommodations, please contact the Orange County Sanitation District Clerk of the Board's office at
(714)593-7130 at least 72 hours prior to the scheduled meeting. Requests must specify the nature of the disability
and the type of accommodation requested.
Agenda Posting: In accordance with the requirements of California Government Code Section 54954.2,this agenda
has been posted outside the main gate of the Sanitation District's Administration Building located at 10844 Ellis
Avenue, Fountain Valley, California, not less than 72 hours prior to the meeting date and time above. All public
records relating to each agenda item, including any public records distributed less than 72 hours prior to the meeting
to all,or a majority of the Board of Directors,are available for public inspection in the office of the Clerk of the Board.
NOTICE TO DIRECTORS: To place items on the agenda for the Committee Meeting, items must be submitted to the
Clerk of the Board 14 days before the meeting.
Made E.Ayala
Clerk of the Board
(714)593-7130
mavala(d)ocsd.com
For any questions on the agenda,Committee members may contact staff at:
General Manager Jim Ruth (714)593-7110 imth(ctocsd.com
Assistant General Manager Bob Ghirelli (714)593-7400 rohirelli(docsd.com
Assistant General Manager Jim Herberg (714)593-7300 iherbem(Womd.com
Director of Finance and Lorenzo Tyner (714)593-7550 Itwer((Domd.com
Administrative Services
Director of Human Resources Jeff Reed (714)593-7144 ireed((Docsd.com
0311 W13 Administration Committee Agenda Page 2 of 2
Glossary of Terms and Abbreviations
AQMD Air Quality Management District
ASCE American Society of Civil Engineers
BOO Biochemical Oxygen Demand
CARB California Air Resources Board
CASA California Association of Sanitation Agencies
CCTV Closed Circuit Television
CEQA California Environmental Quality Act
CRWQCB California Regional Water Quality Control Board
CWA Clean Water Act
CWEA California Water Environment Association
EIR Environmental Impact Report
EMT Executive Management Team
EPA U.S. Environmental Protection Agency
FOG Fats, Oils, and Grease
FSSD Facilities Support Services Department
gpd Gallons per day
GWR System Groundwater Replenishment System (also called GWRS)
LOS Level of Service
MGD Million gallons per day
NACWA National Association of Clean Water Agencies
NPDES National Pollutant Discharge Elimination System
NWRI National Water Research Institute
O&M Operations and Maintenance
OCCOG Orange County Council of Governments
OCHCA Orange County Health Care Agency
OCSD Orange County Sanitation District
OCWD Orange County Water District
OOBS Ocean Outfall Booster Station
OSHA Occupational Safety and Health Administration
POTW Publicly Owned Treatment Works
ppm Parts per million
RFP Request For Proposal
RWQCB Regional Water Quality Control Board
SARFPA Santa Ana River Flood Protection Agency
SARI Santa Ana River Inceptor
SARWQCB Santa Ana Regional Water Quality Control Board
Glossary of Terms and Abbreviations
SAWPA Santa Ana Watershed Project Authority
SCADA Supervisory Control and Data Acquisition system
SCAP Southern California Alliance of Publicly Owned Treatment Works
SCAQMD South Coast Air Quality Management District
SOCWA South Orange County Wastewater Authority
SSMP Sanitary Sewer Management Plan
SSO Sanitary Sewer Overflow
SWRCB State Water Resources Control Board
TDS Total Dissolved Solids
TMDL Total Maximum Daily Load
TSS Total Suspended Solids
WDR Waste Discharge Requirements
WEF Water Environment Federation
WERF Water Environment Research Foundation
Activated-sludge process — A secondary biological wastewater treatment process where bacteria
reproduce at a high rate with the introduction of excess air or oxygen, and consume dissolved
nutrients in the wastewater.
Biochemical Oxygen Demand (BOD)—The amount of oxygen used when organic matter undergoes
decomposition by microorganisms. Testing for BOD is done to assess the amount of organic matter in
water.
Biosolids — Biosolids are nutrient rich organic and highly treated solid materials produced by the
wastewater treatment process. This high-quality product can be recycled as a soil amendment on
farm land or further processed as an earth-like product for commercial and home gardens to improve
and maintain fertile soil and stimulate plant growth.
Capital Improvement Program (CIP) — Projects for repair, rehabilitation, and replacement of assets.
Also includes treatment improvements, additional capacity, and projects for the support facilities.
Coliform bacteria—A group of bacteria found in the intestines of humans and other animals, but also
occasionally found elsewhere used as indicators of sewage pollution. E. coli are the most common
bacteria in wastewater.
Collections system — In wastewater, it is the system of typically underground pipes that receive and
convey sanitary wastewater or storm water.
Certificate of Participation (COP) — A type of financing where an investor purchases a share of the
lease revenues of a program rather than the bond being secured by those revenues.
Contaminants of Potential Concern (CPC) — Pharmaceuticals, hormones, and other organic
wastewater contaminants.
Dilution to Threshold (DR) — the dilution at which the majority of the people detect the odor
becomes the D(f for that air sample.
Glossary of Terms and Abbreviations
Greenhouse gases — In the order of relative abundance water vapor, carbon dioxide, methane,
nitrous oxide, and ozone gases that are considered the cause of global warming ("greenhouse
effect').
Groundwater Replenishment (GWR) System — A joint water reclamation project that proactively
responds to Southern California's current and future water needs. This joint project between the
Orange County Water District and the Orange County Sanitation District provides 70 million gallons a
day of drinking quality water to replenish the local groundwater supply.
Levels of Service (LOS)—Goals to support environmental and public expectations for performance.
NOMA— N-Nitrosodimethylamine is an N-nitrosoamine suspected cancer-causing agent. It has been
found in the Groundwater Replenishment System process and is eliminated using hydrogen peroxide
with extra ultra-violet treatment.
National Biosolids Partnership (NBP) — An alliance of the National Association of Clean Water
Agencies (NACWA) and Water Environment Federation (WEF), with advisory support from the U.S.
Environmental Protection Agency (EPA). NBP is committed to developing and advancing
environmentally sound and sustainable biosolids management practices that go beyond regulatory
compliance and promote public participation in order to enhance the credibility of local agency
biosolids programs and improved communications that lead to public acceptance.
Plume—A visible or measurable concentration of discharge from a stationary source or fixed facility.
Publicly-owned Treatment Works (POTW)— Municipal wastewater treatment plant.
Santa Ana River Interceptor (SARI) Line — A regional brine line designed to convey 30 million
gallons per day (MGD) of non-reclaimable wastewater from the upper Santa Ana River basin to the
ocean for disposal, after treatment.
Sanitary sewer — Separate sewer systems specifically for the carrying of domestic and industrial
wastewater. Combined sewers carry both wastewater and urban run-off.
South Coast Air Quality Management District (SCAQMD) — Regional regulatory agency that
develops plans and regulations designed to achieve public health standards by reducing emissions
from business and industry.
Secondary treatment — Biological wastewater treatment, particularly the activated-sludge process,
where bacteria and other microorganisms consume dissolved nutrients in wastewater.
Sludge—Untreated solid material created by the treatment of wastewater.
Total suspended solids (TSS)—The amount of solids floating and in suspension in wastewater.
Trickling filter — A biological secondary treatment process in which bacteria and other
microorganisms, growing as slime on the surface of rocks or plastic media, consume nutrients in
wastewater as it trickles over them.
Urban runoff — Water from city streets and domestic properties that carry pollutants into the storm
drains, rivers, lakes, and oceans.
Wastewater—Any water that enters the sanitary sewer.
Watershed —A land area from which water drains to a particular water body. OCSD's service area is
in the Santa Ana River Watershed.
ADMINISTRATION COMMITTEE Meeting Date T1.1 III,.
03/13/13 3/27/13
AGENDA REPORT Item Number Item Number
z
Orange County Sanitation District
FROM: James D. Ruth, General Manager
Originator: Maria Ayala
SUBJECT: CONFLICT OF INTEREST CODE
GENERAL MANAGER'S RECOMMENDATION
Adopt Resolution No. OCSD 13-XX, adopting a Conflict of Interest Code which supersedes all
prior Conflict of Interest Codes and amendments previously adopted.
SUMMARY
See attached General Counsel's memorandum dated March 5, 2013.
PRIOR COMMITTEEIBOARD ACTIONS
May 25, 2011 —Board amended the Conflict of Interest Code
ADDITIONAL INFORMATION
None
CEQA
N/A
BUDGET/DELEGATION OF AUTHORITY LEVEL
N/A
ATTACHMENTS
The following attachment(s) are included in hard copy and may also be viewed on-line at the OCSD
website(www.ocsd.com) with the complete agenda package:
• General Counsel's Memorandum, March 5, 2013 (3 Pages)
• Proposed Resolution No. OCSD 13-XX (2 Pages)
• Conflict of Interest Code (6 pages)
902861.1
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INWOODRUFF SPRADLIN•SMART
$55 ANTON•BOOLIYARO. SV.TF 1200 ,
COSTA MESA. CA 92626.76r0
(714)M-7000
MEMORANDUM
TO: Chair and Members of the Board of Directors
Orange County Sanitation District
FROM: Bradley R. Hogin, Esq.
DATE: March 5,2013
RE: Resolution Adopting the District's 2013 Conflict of Interest Code
Summary
The Political Reform Act requires that every local agency review its Conflict of Interest
Code biennially. General Counsel recommends that the Board adopt the 2013 Conflict of
Interest Code to reflect the following changes:
• Addition and deletion of several positions, including the addition of positions on
the Orange County Sanitation District Financing Corporation;
• Changes to names under Designated Positions;
• Addition and deletion of disclosure classifications;
• Reorganization of Designated Positions by disclosure categories; and
• Modification to disclosure requirements for certain positions to tailor disclosure
categories to the type of economic interests that will foreseeably be materially
affected by a designated employee's decision making.
Discussion
The Resolution adopting the District's 2013 Conflict of Interest Code revises the District's
list of designated employees that are required to file statements of economic interests. The
Resolution also revises the disclosure requirements to ensure disclosure of economic interests are
narrowly tailored to the type of economic interests which may foreseeably be materially affected
by decisions made by the designated employees. In addition, the changes include the addition of
positions on the Orange County Sanitation District Financing Corporation,for positions involved
in the making or participation in the making of decisions which may foreseeably have a material
effect on any financial interest.
W28M I
Orange County Sanitation District Return to Agenda Report
March 5, 2013
Page 2
Government Code section 87300 requires every public agency to adopt and promulgate a
conflict of interest code covering all positions within the District (other than statutory filers) who
make or participate in making decisions which may foreseeably have a material effect on any
financial interest. Government Code Section 87309 provides:
"No Conflict of Interest Code or amendment shall be approved by the code
reviewing body or upheld by a court if it:
(a) Fails to provide reasonable assurance that all foreseeable potential conflict
of interest situations will be disclosed or prevented;
(b) Fails to provide to each affected person a clear and specific statement of
his duties under the Code; or
(c) Fails to adequately differentiate between designated employees with
different powers and responsibilities."
Once a local agency has adopted a conflict of interest code, local agencies are required under
Government Code section 87306.5 to review their codes, and if a change to the code is
necessitated by changed circumstances,the local agency must submit an amended code.
In 2011 and 2012, when the California Fair Political Practices Commission (FPPC) was
considering changes to its gift regulations, the FPPC's General Counsel issued several
memorandums opining that "conflict of interest code disclosure categories must be narrowly
tailored to the type of economic interests that will foreseeably be affected by a designated
employee's decisionmaking." (May 7, 2012, Memorandum from Zackery P. Mor=ini, General
Counsel.) The FPPC's General Counsel also indicated that "requiring over-disclosure is a
frequent problem in agency conflict of interest codes." (!d.) The FPPC's General Counsel noted
"[c]ase law going back to before the Act was adopted makes it clear that financial disclosure
laws must meet certain constitutional standards, and overbreath must be avoided."
Two California Supreme Court cases provide guidance concerning financial disclosure
laws. In City of Carmel-by-the Sea v. Young, (1970) 2 Ca1.3d 259 [Carmel], the Court found a
financial disclosure law that required officials and candidates to disclose the nature and extent of
investments in excess of $10,000, as well as those of his or her spouse and minor children,
undertook an overbroad intrusion in the right of privacy and thereby impermissibly restricted the
right to seek or hold public office or employment. Four years later,the Supreme Court in County
of Nevada v. MacMillen, (1974) 11 Cal.3d 662, found a different financial disclosure law had
been "specially tailored to meet and satisfy the primary concerns of the Carmel ruling."
Specifically,the Court explained:
"No effort is made to relate the disclosure to financial dealings or assets which
might be expected to give rise to a conflict of interest; that is, to those having
some rational connection with or bearing upon, or which might be affected by
the functions or jurisdiction of any particular agency, whether statewide or
local, or on the functions or jurisdiction of any particular public officer or
employee." (!d at p. 671.)
9a s"A
Orange County Sanitation District Return to Agenda Report
March 5,2013
Page 3
With guidance from these Memorandums issued by FPPC's General Counsel, it is
recommended that the proposed changes to the conflict of interest codes be adopted. These
changes are necessary to ensure that disclosure requirements for certain positions are narrowly
tailored to the type of economic interests that will foreseeably be materially affected by a
designated employee's decision making. Additional changes are also proposed that update
certain positions that have been added, deleted,or renamed.
Recommendation
General Counsel recommends that the Board adopt the 2013 Conflict of Interest Code to
reflect the changes described herein. Upon adoption, the Code will be submitted to the County
Board of Supervisors as the Code-reviewing body.
4rgdley R. Hogin
General Counsel
W38",1
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RESOLUTION NO. OCSD 13-XX
A RESOLUTION OF THE BOARD OF DIRECTORS OF ORANGE
COUNTY SANITATION DISTRICT ADOPTING A CONFLICT OF
INTEREST CODE WHICH SUPERSEDES ALL PRIOR CONFLICT
OF INTEREST CODES AND AMENDMENTS PREVIOUSLY
ADOPTED
WHEREAS, the Political Reform Act of 1974, Government Code Section 81000
et. seq. ('the Act'), requires a local government agency to adopt a Conflict of Interest
Code pursuant to the Act; and
WHEREAS, the Orange County Sanitation District ("District') has previously
adopted a Conflict of Interest Code and that Code now requires updating; and
WHEREAS, amendments to the Act have in the past and foreseeably will in the
future require conforming amendments to be made to the Conflict of Interest Code; and
WHEREAS, the Fair Political Practices Commission has adopted a regulation, 2
California Code of Regulations, Section 18730, which contains terms for a standard
model Conflict of Interest Code, which, together with amendments thereto, may be
adopted by public agencies and incorporated by reference to save public agencies time
and money by minimizing the actions required of such agencies to keep their codes in
conformity with the Political Reform Act.
NOW THEREFORE, BE IT RESOLVED:
Section 1. The terms of 2 California Code of Regulations, Section 18730, any
amendments to it duly adopted by the Fair Political Practices Commission, and
all additional guidance by the Fair Political Practices Commission, are hereby
incorporated by reference and, together with the 2013 Conflict of Interest Code
for the Orange County Sanitation District, including Exhibits A and B in which
Page 1 of 2
913801.1
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members and employees are designated and disclosure categories are set forth,
constitute the Conflict of Interest Code of the Orange County Sanitation District.
Section 2. The provisions of all Conflict of Interest Codes and Amendments
thereto previously adopted by the Orange County Sanitation District are hereby
superseded.
Section 3. The Filing Officer is hereby authorized to forward a copy of this
Resolution to the Clerk of the Orange County Board of Supervisors for review
and approval by the Orange County Board of Supervisors as required by
California Government Code Section 87303.
PASSED AND ADOPTED at a regular meeting held March 27, 2013.
Troy Edgar,
Chair, Orange County Sanitation District
ATTEST:
Maria Ayala,
Clerk of the Board
Page 2 of 2
913801.1
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2013 CONFLICT OF INTEREST CODE FOR THE
ORANGE COUNTY SANITATION DISTRICT
The Political Reform Act, Government Code Sections 81000, at seq.,
requires state and local government agencies to adopt and promulgate Conflict
of Interest Codes. The Fair Political Practices Commission has adopted a
regulation (2 Cal. Code of Regs. Section 18730)which contains the terms of a
standard Conflict of Interest Code, which may be incorporated by reference in an
agency's code. After public notice and hearing, it may be amended by the Fair
Political Practices Commission to conform to amendments in the Political Reform
Act. Therefore, the terms of 2 California Code of Regulations Section 18730, any
amendments to it duly adopted by the Fair Political Practices Commission, and
all additional guidance by the Fair Political Practices Commission, are hereby
incorporated by reference. This regulation and the attached Appendix
designating officials and employees and establishing disclosure categories, shall
constitute the Conflict of Interest Code of the Orange County Sanitation District.
Designated employees shall file statements of economic interests with the
District's Clerk of the Board who will make the statements available for public
inspection and reproduction (Government Code Section 87500). Upon receipt of
the statements of the Orange County Sanitation District Board of Directors,
Orange County Sanitation District Financing Corporation, General Manager,
General Counsel, Assistant General Manager, Director of Engineering, Director
of Finance & Administrative Services, Director of Operations and Maintenance,
Director of Facility Support Services, Director of Human Resources, and the
Clerk of the Board, the Filing Officer shall make and retain a copy and forward
Page 1 of 6
913806.1
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the original of these statements to the Clerk of the Orange County Board of
Supervisors. Statements for all other designated employees will be retained by
the Filing Officer.
Page 2 of 6
913806.1
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EXHIBIT A
ORANGE COUNTY SANITATION DISTRICT
LIST OF DESIGNATED POSITIONS
CONFLICT OF INTEREST CODE
Disclosure
Designated Positions Categories
General Manager OC-01
Orange County Sanitation District Financing Corporation Board of OC-01
Directors
General Counsel OC-01
Assistant General Manager OC-01
Director of Engineering OC-41
Director of Facility Support Services OC-41
Director of Finance &Administrative Services OC-41
Director of Human Resources new OC41
Director of Operations and Maintenance OC-41
Principal Accountant OC-41
Capital Improvement Program Project Management Supervisor OC41
Capital Improvement Program Project Manager OC41
Treasurer of the Orange County Financing Corporation OC41
Secretary of the Orange County Financing Corporation OC-05
Clerk of the Board OC-05
Controller OC-05
Engineering Manager OC-05
Environmental Compliance & Regulatory Affairs Manager OC-05
Facilities Manager OC-05
Public Affairs Manager OC-05
Environmental Laboratory & Ocean Monitoring Manager OC-05
Maintenance Manager OC-05
Operations Manager OC-05
Accounting Supervisor OC-05
Chief Plant Operator OC-05
Construction Inspection Supervisor OC-05
Senior Construction Inspection Supervisor OC-05
Engineering Supervisor OC-05
Maintenance Supervisor OC-05
Materials Control Supervisor OC-05
Operations Supervisor OC-05
Purchasing Supervisor OC-05
Contracts Supervisor OC-05
Safet & Health Supervisor OC-OS
Bu er OC-05
Page 3 of 6
913806.1
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Senior Buyer OC-05
Contracts Administrator OC-05
Senior Contracts Administrator OC-05
Principal Contracts Administrator OC-05
Senior Engineer OC-05
Contracts and Purchasing Manager OC-05
Information Technology Manager OC-08
Information Technology Systems & Operations Manager OC-08
Information Technology Supervisor new OC-08
Construction Inspector OC-10
Senior Construction Inspector OC-10
Human Resources Supervisor OC-11
Risk Manager OC-12
Principal Financial Analyst OC-12
Laboratory Supervisor OC-21
Senior Scientist OC-21
Environmental Supervisor OC-29
Consultant OC-30
Page 4 of 6
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EXHIBIT B
ORANGE COUNTY SANITATION DISTRICT
DISCLOSURE CATEGORIES
CONFLICT OF INTEREST CODE
Disclosure
Category Disclosure Description
OC-01 All interests in real property in Orange County or the District, as well as
investments, business positions and sources of income (including gifts,
loans and travel pa menu).
OC-05 All investments in, business positions with and income (including gifts,
loans and travel payments)from sources that provide services, supplies,
materials, machinery, equipment (including training and consulting
services) used by the department or District, as applicable.
OC-08 All investments in, business positions with and income (including gifts,
loans and travel payments)from sources that develop or provide computer
hardware/software, voice data communications, or data processing
goods, supplies, equipment, or services (including training and consulting
services) used by the department or District, as applicable.
OC-10 All investments in, business positions with and income (including gifts,
loans and travel payments)from sources that are engaged in any real
estate activity including, but not limited to real estate appraisal,
development, construction, planning/architectural design, engineering,
sales, brokerage, leasing, lending, insurance, rights of way, and/or
studies; and/or property or facilities management/maintenance/custodial
and utility services as used by the department or provides capital for the
purchase of property used or sold by Orange County or the District.
OC-11 All interests in real property in Orange County or located entirely or partly
within District boundaries, as well as investments in, business positions
with and income (including gifts, loans and travel payments)from sources
that are engaged in the supply of equipment related to (i) recruitment,
employment search & marketing, classification, training, or negotiation
withpersonnel; ii employee benefits; and iii health and welfare benefits.
OC-12 All interests in real property in Orange County, as well as investments in,
business positions with and income (including gifts, loans and travel
payments)from sources that invest funds or engage in the business of
insurance including, but not limited to insurance companies, carriers,
holding companies, underwriters, brokers, solicitors, agents, adjusters,
claims mangers and actuaries; from financial institutions including but not
limited to, banks, savings & loan associations and credit unions or sources
that have filed a claim, or have a claim pending, against Orange County.
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EXHIBIT B
ORANGE COUNTY SANITATION DISTRICT
DISCLOSURE CATEGORIES
CONFLICT OF INTEREST CODE
Disclosure
Cate o Disclosure Description
OC-21 All investments in, business positions with and income (including gifts,
loans and travel payments)from sources that provide laboratory or
chemical — related goods, supplies, equipment, or services (including
trainin and consulting services) .
OC-29 All investments in, business positions with and income (including gifts,
loans and travel payments)from sources that are subject to inspection or
regulation by the department.
OC-30 Consultants shall be included in the list of designated employees and shall
disclose pursuant to the broadest category in the code subject to the
following limitation: The Department Head/Director/General
Manager/Superintendant/etc. may determine that a particular consultant,
although a "designated position," is hired to perform a range of duties that
is limited in scope and thus is not required to fully comply with the
disclosure requirements in this section. Such written determination shall
include a description of the consultant's duties and, based upon that
description, a statement of the extent of disclosure required. The
determination of disclosure is a public record and shall be filed with the
Form 700 and retained by the Filing Officer for public inspection.
OC41 All interests in real property in Orange County or the District, as
applicable, as well as investments in, business positions with and income
(including gifts, loans and travel payments)from sources that provide
services, supplies, materials, machinery, vehicles, or equipment (including
training and consulting services) used by the department or District, as
applicable.
Page 6 of 6
913806.1
ADMINISTRATION COMMITTEE Needng Dare To ad.of Dir.
03,13,13 —
AGENDA REPORT ern Number Item Number
3
Orange County Sanitation District
FROM: Troy Edgar, Board Chair
Originator: Jeff Reed, Director of Human Resources
SUBJECT: CONSULTING SERVICES AGREEMENT FOR JAMES D. RUTH
BOARD CHAIR'S RECOMMENDATION
A. Waive the one year prohibition in OCSD Personnel Policy 1.4 for James D. Ruth
regarding retaining former employees as independent contractors or consultants;
and
B. Authorize the Board Chair to execute a Consulting Services Agreement with
James D. Ruth effective April 1, 2013 for a three month term with the option for a
three month extension (maximum six month term) at a cost of $10,000 per
month.
SUMMARY
James D. Ruth's ("Mr. Ruth") employment with OCSD will terminate effective April 1,
2013. It is recommended that the Administration Committee exercise its authority
pursuant to Section 6.1.8 of OCSD Personnel Policy 1.4 to waive the one-year
prohibition to retain Mr. Ruth as a consultant/independent contractor, as provided in
Section 6.1.5 of OCSD Personnel Policy 1.4, and authorize the Board Chair to execute
a Consulting Services Agreement with Mr. Ruth. The Agreement will take effect
immediately upon termination (April 1, 2013) and continue for a minimum three month
term, with an option to extend the Agreement for an additional three months (maximum
six month term). The Agreement provides that Mr. Ruth will provide consulting services
to OCSD concerning sewer service fees, labor negotiations, organizational structure
and operational efficiencies, and other matters as may be required by the Board.
PRIOR COMMITTEE/BOARD ACTIONS
February 27, 2013 — Board authorized the Board Chair to provide notice of termination
of employment to General Manager, James D. Ruth.
ADDITIONAL INFORMATION
Mr. Ruth has been employed with OCSD since 2005, and he has provided General
Manager services for the District. As of April 1, 2013, Mr. Ruth's employment with
OCSD as General Manager will terminate. In accordance with Resolution No. OCSD
07-04, Section 3.10 regarding the selection of specialized services, the Board of
Directors desires to retain the consulting services of Mr. Ruth upon termination (April 1,
2013).
Page 1 of 2
OCSD Personnel Policy 1.4 (Recruitment & Selection), Section 6.1.5, prohibits former
employees from being retained as an independent contractor or consultant to provide
service directly to OCSD for a period of one year after leaving OCSD employment.
Section 6.1.8 of the policy also authorizes the Administration Committee to waive this
prohibition if the Administration Committee determines it is in the best interest of OCSD
to do so.
It is proposed that the Administration Committee waive the one-year prohibition for
retaining Mr. Ruth as a consultant because he possesses a unique set of knowledge,
skills and abilities to advise and support OCSD on several major issues, including, but
not limited to, sewer service fees, labor negotiations, organizational structure and
operational efficiencies, and other matters as deemed necessary by the Board of
Directors.
The proposed term of the consulting services commences April 1, 2013 for a period of
three months with the option to extend the term for an additional three months, if
necessary. The compensation rate proposed for Mr. Ruth's services is $10,000 per
month. The proposed Consulting Services Agreement is attached.
CEQA
N/A
BUDGET/DELEGATION OF AUTHORITY COMPLIANCE
The funds for these services will be derived from the OCSD Operating Budgets for FY
2012-13 and 2013-14.
ATTACHMENTS
The following attachment(s) are provided in hard copy and may also be viewed on-line at the OCSD
website(www.ocsd.com) with the complete agenda package:
Proposed Consulting Services Agreement (5 Pages)
Page 2 of 2
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CONSULTING SERVICES AGREEMENT
THIS CONSULTING SERVICES AGREEMENT ("Agreement") is made and entered
into by and between the ORANGE COUNTY SANITATION DISTRICT (hereinafter, "OCSD"
or "Sanitation District"), a public agency, and James D. Ruth, an individual, (hereinafter referred
to as "Consultant'), to be effective this 1st day of April 2013. OCSD and Consultant are
sometimes hereinafter individually referred to as `Party" and are hereinafter collectively referred
to as the "Parties"
RECITALS
A. The Sanitation District,by and through its Board of Directors, desires to retain the
consulting services of James D. Ruth to provide advisory and support services concerning
Sanitation District business, including, but not limited to, sewer service fees, labor negotiations,
organizational structure and operational efficiencies, and other matters as may be required by the
Board of Directors; and
B. Based on Consultant's experience, knowledge, and skills, Consultant is uniquely
qualified to perform these specialized services; and
C. Consultant desires to provide the necessary consulting services to the Sanitation
District and the Board of Directors pending completion of the sewer service fees, labor
negotiations, and other matters as may be required by the Board of Directors; and
D. The Sanitation District has adopted procedures in accordance with Resolution No.
OCSD 07-04, Section 3.10, for the selection of specialized services and has proceeded in
accordance with said procedures; and
E. Pursuant to OCSD's Personnel Polices, Policy Number 1.4, section 6.1.8, on
March 13, 2013, the Administration Committee of OCSD's Board of Directors determined that it
is in the best interest of OCSD to waive the limitations of section 6.1.5 and to enter into this
Agreement.
NOW, THEREFORE, in consideration of the promises and mutual benefits, which will
result to the Parties in carrying out the terms of this Agreement,it is mutually agreed as follows:
1.0 Retention
1.1 The Sanitation District hereby retains the services of Consultant to provide
advisory and support services concerning Sanitation District business, including, but not limited
to, sewer service fees, labor negotiations, organizational structure and operational efficiencies,
and other matters as may be required by the Board of Directors, effective April 1, 20135 and
Consultant hereby agrees to provide such consulting services for the Sanitation District as the
Board of Directors deems appropriate.
Return to Agenda Report
1.2 All services performed by Consultant, including but not limited to all drafts, data,
correspondence, proposals, and reports, compiled or composed by the Consultant, pursuant to
this Agreement, are for the sole use of the Sanitation District, its agents and employees. Neither
the documents nor their contents shall be released to any third party without the prior written
consent of the Sanitation District. This provision does not apply to information that (a) was
publicly known, or otherwise known to the Consultant, at the time that it was disclosed to the
Consultant by the Sanitation District, (b) subsequently becomes publicly known to the
Consultant other than through disclosure by the Sanitation District Neither the documents nor
their contents shall be released to any third party without the prior written consent of the
Sanitation District.
2.0 Term of Agreement
The term of this Agreement shall commence on April 1, 2013, and shall continue in full
force and effect until July 1, 2013, unless sooner terminated with or without cause or notice by
the Sanitation District or by Consultant, with no less than 30 calendar days' advanced written
notice, provided in accordance with paragraph 13.2 herein. The Parties may extend this
Agreement once for an additional three (3)month term by written amendment to this Agreement.
3.0 Compensation
3.1 Consultant will receive compensation at the flat rate of ten thousand dollars
($10,000) per month for all hours worked pursuant to this Agreement, payable in accordance
with OCSD's established protocols and procedures used for all other consultants and contractors.
Consultant shall not be entitled to any additional compensation or any severance pay upon
termination of this Agreement.
3.2 Consultant's compensation set forth in Section 3.1 includes all hours worked and
all time spent on OCSD related business, regardless of when performed, and includes travel to
and from business related meetings. Consultant may not invoice OCSD for travel to and from
home to OCSD, or work of a personal nature, even if performed while at OCSD and during
regular business hours of OCSD.
3.3 Consultant shall not be entitled to receive any benefits of employment provided to
OCSD's regular full-time or management employees, including, but not limited to, group health
or medical benefits, life insurance,retirement, vacation and other leave accruals.
4.0 Hours of Work
4.1 Consultant's hours of work shall be established by Consultant based on the nature
and amount of work to be performed as determined by the Board of Directors.
4.2 Consultant shall provide bi-weekly updates describing the nature of the services
rendered pursuant to this Agreement. Such updates must be submitted to OCSD's General
Manager, who shall review progress. Once submitted, evidence of the scheduled updates and
associated documentation will be sent to OCSD's Accounting Department for review and
Return to Agenda Report
payment in accordance with the OCSD's established accounting practices for all other
consultants and contractors.
5.0 General Expenses
Consultant is not entitled to receive reimbursement for general expenses incurred in the
performance of his duties pursuant to this Agreement Notwithstanding the foregoing, if
Consultant incurs an extraordinary expense related to the performance of his obligations pursuant
to this Agreement and wishes to seek reimbursement from the Sanitation District for such
expense incurred, he must do so by submitting a request for reimbursement to the Board of
Directors for approval. Any such request must be accompanied by a brief description of the
expense and copies of receipts substantiating the expense.
6.0: Insurance
6.1 Consultant shall procure and maintain, at his sole cost and expense, and submit
concurrently with his execution of this Agreement, in a form and content satisfactory to OCSD,
Automobile liability insurance with limits of at least fifty thousand ($50,000) dollars per
occurrence.
6.2 Insurance required herein shall be issued by a licensed company authorized to
transact business in the state by the Department of Insurance for the State of California with a
current rating of A-:VII or better (if an admitted carrier), or a current rating of A:X or better (if
offered by a non-admitted insurer listed on the State of California List of Eligible Surplus Lines
Insurers (LESLI),by the latest edition of A.M. Best's Key Rating Guide.
6.3 Consultant shall famish OCSD with both original certificates of insurance and
endorsements affecting the coverage required by this Agreement. The certificates and
endorsements are to be signed by a person authorized by that insurer to bind coverage on its
behalf. All proof of insurance is to be received and approved by OCSD before work
commences. OCSD reserves the right to require Consultant's insurer to provide complete,
certified copies of the required insurance policies at any time.
7.0: Other Terms and Conditions
The Board of Directors, in consultation with the Consultant, shall fix any such other
terms and conditions of services to be provided under this Agreement, as it may determine from
time to time, provided such terms and conditions are not inconsistent with or in conflict with the
provisions of this Agreement, OCSD's resolutions and policies,or any other applicable law.
8.0: Independent Contractor
OCSD regards the Consultant's services set forth herein as unique and specialized. It is
agreed that Consultant shall act and be an independent contractor and not an employee of OCSD.
Consultant shall be issued a Form 1099 consistent with his independent contractor status, and
OCSD will not be responsible for any tax withholdings.
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9.0: Non-Liability of Board of Directors
No member of the Board of Directors shall be personally liable to Consultant in the event
of any default or breach by the Board, and or by OCSD, or for any amount, which may become
due to Consultant. Consultant's compensation for the services rendered pursuant to this
Agreement shall be solely an obligation of OCSD to the extent permitted by law.
10.0: Compliance with Law
Consultant shall comply with all applicable laws, ordinances, codes, and regulations of
federal, state, and local government in the performance of the duties and obligations that are the
subject of this Agreement.
11.0 Governing Law and Venue
This Agreement has been negotiated and executed in the State of California and shall be
governed by and construed under the laws of the State of California. Any legal action arising
under or related to this Agreement shall be brought and prosecuted in the Orange County
Superior Court.
12.0 General Provisions
12.1 This Agreement constitutes the entire agreement between the Parties and
supersedes all prior negotiations, arrangements, agreements,representations, and understandings,
if any, made by or among the Parties with respect to the subject matter hereof. No amendments
or other modifications of this Agreement shall be binding unless executed in writing by both
Parties hereto,or their respective successors, assigns,or grantees. To the extent that other oral or
written agreements exist or OCSD policies may apply to the relationship between OCSD and
Consultant, this Agreement supersedes all others.
12.2 Any notices required by this Agreement shall be either given in person or mailed
by first class mail with the postage prepaid and addressed as follows.
IF TO OCSD: Orange County Sanitation District
Attn: Clerk of the Board
10844 Ellis Avenue
Fountain Valley, CA 92708
IF TO CONSULTANT: James D. Ruth
[Address on File with HR Department]
12.3 If any provision, or any portion thereof, contained in this Agreement is held to be
invalid or unenforceable, the remainder of this Agreement, or portion thereof, shall be deemed
severed, shall not be affected and shall remain in full force and effect.
12.4 Any modification of this Agreement shall be effective only if it is in writing and
signed by the parties.
Return to Agenda Report
IN WITNESS WHEREOF, this Agreement has been executed in the name of the
SANITATION DISTRICT, by its officers thereunto duly authorized, and CONSULTANT
effective as of the day and year first above written.
ORANGE COUNTY SANITATION DISTRICT
By
Troy Edgar Date
Chair, Board of Directors
By
Maria Ayala Date
Clerk of the Board
CONSULTANT
By
James D. Ruth Date
ADMINISTRATION COMMITTEE Needng Date TO ad.Of Dir.
03/13/13 --
AGENDA REPORT Item Number Item Number
a
Orange County Sanitation District
FROM: James D. Ruth, General Manager
Originator: Jim Herberg, Assistant General Manager
SUBJECT: PROPOSED SEWER SERVICE FEE SCHEDULE AND CAPITAL
IMPROVEMENT PROGRAM
GENERAL MANAGER'S RECOMMENDATION
Informational only item.
SUMMARY
Staff will present the Capital Improvement Program and the proposed user fee
schedule.
PRIOR COMMITTEE/BOARD ACTIONS
March 2013 Operations Committee: Staff presented the Capital Improvement
Program and the proposed user fee schedule.
February 2013 Operations Committee: Presentation on Proposed Rate Schedule
Administration Committee: Consider a five year rate schedule for
regional sewer service charges and industrial sewer service
charges, which includes a 4.8% rate increase effective July 1,
2013, followed by four annual increases of 2.4%.
Board Meeting: Set March 27, 2013, as the date of the Public
Hearing to hear protests and for the second reading of the
Ordinance No. OCSD41 and OCSD42.
January 2013 Board Meeting: Receive and file the Sanitation District's
Wastewater Revenue Program Rate Study completed by Carollo
Engineers.
December 2012 Board Meeting: Direct staff to prepare and mail Proposition 218
notifications outlining a Regional and Local sewer service fee
schedule.
Page 1 of 2
ADDITIONAL INFORMATION
N/A
CEQA
N/A
BUDGET/DELEGATION OF AUTHORITY COMPLIANCE
N/A
Page 2 of 2
ADMINISTRATION COMMITTEE tdeedng Dare To ad.of Dir.
03/13/13 --
AGENDA REPORT Item Number Item Number
s
Orange County Sanitation District
FROM: James D. Ruth, General Manager
Originator: Lorenzo Tyner, Director of Finance and Administrative Services
GENERAL MANAGER'S RECOMMENDATION
Informational item regarding FY 2013-14 District Budget Update.
SUMMARY
For continued discussion on the development of the District's Proposed Update to the
FY 2013-14 Budget, detail of the District's revenues has been provided below.
The Proposed Budget Update will be presented for adoption at the June 26, 2013 Board
meeting.
PRIOR COMMITTEE/BOARD ACTIONS
N/A
ADDITIONAL INFORMATION
N/A
CEQA
N/A
BUDGET / DELEGATION OF AUTHORITY COMPLIANCE
N/A
ATTACHMENTS
The following attachment(s) are provided in hard copy and may also be viewed on-line at the OCSD
website(www.ocsd.com) with the complete agenda package:
FY 2013-14 Budget Development Revenue Detail
JDR:LT:MW:jf
Page 1 of 4
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FY 2013-14 Budget Development Revenue Detail
Revenue Summary (In millions)
Category 2011-12 2012-13 2013-14
Actual Adopted Adopted
Revenues:
Service Fees 237.9 266.6 282.2
Permit User Fees 9.5 10.5 10.9
Capital Facility Capacity Charge 8.9 7.7 7.8
Property Taxes 67.9 64.0 64.0
Interest 15.7 12.1 14.8
Other Revenue 21.6 20.6 22.5
Debt Proceeds 0.0 0.0 0.0
Total Revenue $361.5 $381.5 $402.2
The District has a variety of revenue sources available for operating and capital expenses.
The major revenue sources are as follows:
• General Sewer Service Fees
• Industrial Waste Permit User Fees
• Capital Facilities Capacity Charges (CFCC)
• Property Taxes
• Interest Earnings
• Other Miscellaneous Revenue
• Debt Proceeds
2012.13 2013.14
General Service Fees— $261 $282.2M
User fees are ongoing fees for service paid by customers
connected to the sewer system. A property owner, or user, does
not pay user fees until connected to the sewer system and
receiving services. Once connected, a user is responsible for his
share of the system's costs, both fixed and variable, in proportion
to his demand on the system. These fees are for both Single
Family Residences (SFR) and Multiple Family Residences (MFR).
The Board approved FY 2012-13 single family residential rate (the
underlying basis for all sewer rates) is $294. Staff is proposing a
4.8 percent rate increase in FY 2013-14 to$308. These rates are
still well below the average annual sewer rate currently being
charged throughout the state.
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2012-13 2013-14
Industrial Waste Permit User Fees— $10.5M $10.9M
Fees paid by large industrial and commercial properties owners
connected to the sewer system. These fees are for the owner's
share of the system's costs, both fixed and variable, in proportion
to his demand on the system.
Since the inception of the Permit User Fee program in 1970, users
of the District's system that discharge high volumes or high
strength wastewater have been required to obtain a discharge
permit and pay extra fees for the costs of service.
Capital Facilities Capacity Charges (CFCC)— $7.7M $7.8M
Capital Facilities Capacity Charge is a one-time, non-discriminatory
charge imposed at the time a building or structure is newly
connected to the District's system, directly or indirectly, or an
existing structure or category of use is expanded or increased.
This charge pays for District facilities in existence at the time the
charge is imposed, or to pay for new facilities to be constructed in
the future, that are of benefit to the property being charged.
Property Taxes— $64.0101 $64.011111
The County is permitted by State law (Proposition 13)to levy taxes
at 1% of full market value (at time of purchase) and can increase
the assessed value no more than 2% per year. The District
receives a share of the basic levy proportionate to what was
received in the 1976 to 1978 period less$3.5 million, the amount
that represents the State's permanent annual diversion from
special districts to school districts that began in 1992-93. The
District's share of this revenue is dedicated for the payment of debt
service.
Interest Earnings— $12.1M $14.8M
Interest earnings are generated from the investment of
accumulated reserves consisting of a cash flow/contingency, a
capital improvement, a renewal/replacement, and a self-insurance
reserve.
Other Revenue— $20.6M $22.5M
Other revenue includes$14.6 million and $14.9 from the Irvine
Ranch Water District(IRWD)for capital and equity charges and
$4.5 million and $4.7 million for sewer services provided to the
Santa Ana Watershed Protection Authority (SAWPA) and the
Sunset Beach Sanitary District for FY 2012-13 and 2013-14,
respectively.
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Return to Agenda Report
2012-13 2013.14
Debt Proceeds— $0.0M $O.OM
Certificates of Participation (COPS) are the District's primary
mechanism for financing capital projects. COPS are repayment
obligations based on a lease or installment sale agreement. COPS
are viewed by the State of California as a share in an installment
arrangement where the District serves as the purchaser. No new
debt issuances are projected in the near-term.
Financing
If is necessary that the District utilize debt financing to meet its total obligations and to meet
projected construction schedules, the District uses long-term borrowing (Certificates of
Participation (COP)) for capital improvements that cannot be financed from current revenue.
Before any new debt is issued, the impact of debt service payments on total annual fixed costs
is analyzed. No new debt issuance is currently being planned.
The District Maintains its AAA Rating
The District maintains ratings of"AAA" from Standards and Poor and "AA" from Fitch. A triple A
rating is the highest obtainable for any governmental agency. In order to maintain this rating,
the District adheres to its 2001 Debt Policy and coverage ratios requirements. This Board-
adopted policy serves as the agency's guide in the management of existing debt and in the
issuance of future debt.
OCSD Has Contractual Covenants
The District does have contractual covenants within the existing COP agreements which require
minimum coverage ratios of 1.25. The minimum coverage ratio is the ratio of net annual
revenues available for debt service requirements to total annual debt service requirements for
all senior lien COP debt. The coverage ratio for senior lien COP debt was approved at 2.76 and
2.45 for FY 2012-13 and 2013-14, respectively.
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ADMINISTRATION COMMITTEE Needng Date To ad.of Dir.
03/13/13 --
AGENDA REPORT Item Number Item Number
6
Orange County Sanitation District
FROM: James D. Ruth, General Manager
Originator: Lorenzo Tyner, Director of Finance &Administrative Services
SUBJECT: Status of 2013-14 Insurance Renewals
GENERAL MANAGER'S RECOMMENDATION
Informational only.
SUMMARY
Historically, the Administration Committee has asked for status updates regarding the
renewals of major insurance policies each year. The Risk Management Division and
the Sanitation District's operational insurance broker begin the process of renewal each
January, and final quotes are typically received in June shortly before the beginning of
the new fiscal year.
The Sanitation District budget provides funds for the renewal of the following four major
insurances for the operations:
1) Excess General Liability Insurance
2) Excess Workers' Compensation
3) All-Risk Property and Flood insurance
4) Boiler& Machinery Insurance
PRIOR COMMITTEE/BOARD ACTIONS
June 2012 - The Board approved renewal of the above four policies for the period
July 1, 2012 through June 30, 2013.
ADDITIONAL INFORMATION
1) Excess General Liability Insurance Program
The Sanitation District's Excess General Liability Insurance Program is currently
provided through the California Municipal Excess Liability Program (CAMEL) and its
sister program, the Alliant National Municipal Liability Program (ANML). The
Sanitation District has participated in the CAMEL program since FY 1996-97.
Page 1 of 4
ADDITIONAL INFORMATION (cont'd)
This program currently provides the Sanitation District with a $30 million policy of
comprehensive coverage for municipal liability, bodily injury and property damage,
and personal injury. The program was structured to also include Employment
Practices, and Public Officials Errors & Omissions coverage. The $30 million
coverage has a self-insured deductible of $250,000 per occurrence and $500,000
deductible for employment practices claims. Since 1997, the Employment Practices
portion of coverage has been enhanced from a $2 million sub-limit to the full $30
million policy limit.
The actual insurance coverage currently consists of two separate layers. The first
layer is the "Basic" $10 million program with self-insured retention of $250,000. The
second layer consists of $20 million of coverage in excess of the first layer of $10
million.
The premium for 2012-13 was $356,540, higher than the premiums for 2010-11 and
2011-12, but lower than the premiums paid during the years 2003-10.
2) Excess Workers' Compensation Insurance
The Excess Workers' Compensation insurance coverage is with the California State
Association of Counties Excess Insurance Authority (CSAC EIA). The Sanitation
District has participated in this program or its predecessor since 2003. Excess
Workers' Compensation Program currently provides so-called "Statutory" (unlimited)
coverage with a self-insured retention (SIR), or deductible, of$750,000.
The use of Excess Workers' Compensation Insurance dates back to the late 1980's.
At that time, the Fiscal Policy Committee approved an SIR, or deductible, of
$250,OOO, for such coverage.
Due to the hardening of the workers' compensation market, this deductible was
raised to $500,000 beginning in FY 2002-03 through a policy with Employers
Reinsurance Corporation (ERC) that provided coverage at the time of $25 million
with a self-insured retention (SIR), or deductible of$500,000.
Some additional risk may be associated with the CSAC EIA joint powers authority in
that a premium surcharge can be assessed to individual members if an unusually
large number of losses were to occur outside of the actuarial evaluation estimates.
However, historically the CSAC EIA premiums for excess workers compensation
have been so much less than competing quotes available to the Sanitation District
that if even there were a surcharge, the cost might still continue to be cheaper.
The renewal of the Excess Workers' Compensation Insurance for the period July 1,
2012 through June 30, 2013 was at a rate of .002732 (higher than the previous
year's rate of .00247 but lower than the year before of .002763). This premium rate
generated an estimated premium of approximately $172,000 based on the estimated
Page 2 of 4
ADDITIONAL INFORMATION (cont'd)
2012-13 payroll. Since the premium itself is based on final payroll, the Sanitation
District will not know the exact final premium until the year is over.
3) All-Risk Property and Flood Insurance
All-Risk Property and Flood Insurance Program (Property Insurance) provides for
comprehensive coverage for most of the Sanitation District's real and personal
property regarding virtually all perils including fire, flood, and business interruption.
The Sanitation District previously carried earthquake insurance as part of its
Property Insurance, but in the last few years earthquake insurance has been
impossible to obtain or not cost-effective. Currently, the Sanitation District has
earthquake insurance only in connection with some of its buildings under
construction.
Current Property Insurance limits are $1 billion for most perils other than flood and
earthquakes, and $300 million for flood, with many sub-limits for various situations.
In order to reach $1 billion in limits, the broker had to arrange for nearly a dozen
different layers of insurers. The SIR is $250,000 per occurrence for most types of
losses.
Since the late 1990's, the Property Insurance has been with a nationwide joint
purchase property insurance program called Public Entity Property Insurance
Program (PEPIP), one of the world's largest property programs. It is important to
note that this joint purchase property insurance program offers the purchasing power
of numerous large public entities without the pooling or sharing of coverage or
losses.
The renewal of All-Risk Property and Flood Insurance for the period July 1, 2012
through June 30, 2013 was at a premium of $523,621, an increase of 16.5% due
partly to the cost of adding newly-finished construction to the list of insured
structures. This number is, however, much lower than the $700,000+ paid during
several years in the early and mid-2000's.
4) Boiler& Machinery Insurance
The Boiler & Machinery Insurance Program provides comprehensive coverage for
loss caused by machinery breakdown and explosion of steam boilers or other
covered process equipment, including damage to the equipment itself and damage
to other property caused by covered accident.
The current Boiler & Machinery Insurance Program provides coverage ($100 million
per occurrence with deductibles ranging from $25,000 to $350,000) for losses
caused by covered machinery breakdown (e.g., motors, steam turbines, digesters,
co-gen engines). Damages to the equipment, as well as damages to other property
Page 3 of 4
ADDITIONAL INFORMATION (cont'd)
and improvements caused by the machinery breakdown, are covered by the Boiler &
Machinery Insurance. This program augments the Sanitation District's All-Risk
Property Insurance that covers perils such as fire and flood.
The renewal of the Boiler & Machinery Insurance Program for the period July 1,
2012 through June 30, 2013 was at $18,571. As with the Property Insurance, this
number is higher than last year but lower than during some of the years in the early
and mid-2000's.
CEQA
N/A
BUDGET/DELEGATION OF AUTHORITY COMPLIANCE
N/A
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